Gun stocks taking a beating... when to buy?

RGR - Sturm Ruger and Company is the one thats of interest to me. They just paid a huge pre-tax cliff dividend but have been paying an increasing quarterly dividend for the past 3 years after a 3 year hiatus from paying a dividend. despite losing about 15% over the past few days, it's still up +20% on the year.

I'm going to give it a few more days, but if it keeps dropping on just rumor, I'm going to dive in.

re: Gun stocks taking a beating... when to buy?(Posted by LSUTOM07 on 12/18/12 at 2:55 pm to C)

Well I just jumped in. The stock will probably go down a bit more before it goes up, but I think gun sales will go through the roof when something is done in Washington. I don't think there will ever be a ban on handguns (just limited magazine sizes) so I don't see these companies struggling long term. I believe this is a good entry into RGR and SWHC.

re: Gun stocks taking a beating... when to buy?(Posted by Dan on 12/18/12 at 4:35 pm to C)

I just came her to post this same question. Smith & Wesson down 10% on it's largest trading day ever? I don't expect these prices to jump back up in a hurry but I feel they'll slowly recoup much of today's pps drop as the sentiment cools down in the next few months.

re: Gun stocks taking a beating... when to buy?(Posted by gatorsimz on 12/18/12 at 5:03 pm to Dan)

quote:Smith & Wesson down 10%

should be around 8.43/share at 9.8 P/E and .86 EPS. closed at 7.79, almost 8% off that. its P/E is lower than the industry average at 13.7 so there's potential for the stock price to increase a bit. wouldn't be surprised to see it jump back up to around $9 by the end of the year especially if there's a debt deal.

re: Gun stocks taking a beating... when to buy?(Posted by LSUTOM07 on 1/28/13 at 8:57 am to C)

Anyone have any thoughts on when the guns stocks will hit their peak? I'm currently up 28% in RGR with earning to be released late February. I have a gut feeling the stock will get a nice lift after the earnings are released but a lot can happen in a month.